The UK equity release market grew by 11% in 2025, with total lending reaching £2.57 billion according to the Equity Release Council—up from £2.3 billion the year before. The average amount released by customers in the final quarter of 2025 rose by 5.7% year-on-year to £123,174. This is not a niche product for the few: equity release is rapidly becoming a mainstream pillar of retirement planning.
Almost four in ten people approaching retirement are on track to have an income below the Pensions UK 'minimum standard'. More people are reaching later life still carrying mortgage debt, often on fixed or reduced incomes, trying to make their money stretch further. For many homeowners aged 55 and over, the wealth tied up in their property represents their most significant financial resource.
What Are People Using Later Life Lending For?
The uses are as varied as the people themselves. In 2025, 26% of equity release customers used funds to clear an existing mortgage, while 21% went towards home improvements and 13% was gifted to family members. Often helping children or grandchildren onto the property ladder or through key life events. Many customers are motivated by a combination of these goals.
Equity release has never been more tightly regulated or better designed. In the first quarter of 2026, the Financial Conduct Authority launched a focused later life lending market study, examining how property-based solutions can better support consumers borrowing into retirement. This signals that regulators and government recognise the growing importance of property wealth in funding later life.
Equity release is not right for everyone, and it is essential to take proper independent advice before proceeding. Compound interest means the amount owed can grow over time, and equity release will reduce the value of your estate. It may also affect means-tested benefits. These are all important considerations that a qualified adviser will work through with you in detail.
Thinking about releasing equity from your home? Our later life lending specialists can help you understand all your options — from lifetime mortgages to Retirement Interest-Only products - and ensure any decision is the right one for your circumstances. Get in touch for a confidential, no-obligation conversation.
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.